Deputy Minister Tiko Says Freeport Indonesia Can Produce 50 Tons Of Gold Batangan Per Year

JAKARTA - Deputy Minister of SOEs Kartika Wirjoatmodjo revealed that state-owned companies starting this year can produce their own gold bullion. In fact, the amount can reach 50 tons per year.

"We are also lucky that we are in the BUMN ecosystem, starting this year we can produce gold in Indonesia," he said at the Pegadaian Headquarters, Jakarta, Tuesday, May 7.

The man who is familiarly called Tiko explained that the production of gold bullion can be done after the smelter belonging to PT Freeport Indonesia (PTFI) in Gresik operates.

The smelter is targeted to start production in May 2024.

Tiko explained that previously to produce gold bullion or gold bullion, Freeport needed to send a concentrate first to Japan. After being processed and then returned to Indonesia.

"So in the past, when it was in the past, the concentrate was sent from Freeport, printed in Japan, again in Indonesia. Now starting in May, God willing, we will produce gold domestically, in Manyar, Gresik, 50 tons per year," he said.

According to Tiko, this production plan needs to be welcomed with the continued business process. One of them is by presenting a bullion bank.

"So yes, I have said from the start, Mr. Damar (Managing Director of Pegadaian), later especially later there will be a bullion bank, yes, want to cooperate between pawnshops and ecosystems that will be MIND ID later, must be improved and improved so that we no longer need to import," he explained.

Previously, Deputy Minister of BUMN Kartika Wirjoatmodjo believed that gold investment would not fade or'sunset', even though the current global economic condition is quite challenging.

In fact, he continued, big countries such as the United States to China began buying gold in the midst of uncertain geopolitical conditions at this time.

"I believe that this gold is not sunset. In fact, China's big countries, America, are back to gold again. Because with the increasingly unpredictable geopolitical situation, and assets that have also priced ups and downs, many Asset Management Companys, rich people are buying gold again," he said at the Pegadaian Headquarters, Jakarta, Tuesday, May 7.

He said gold is a safe haven asset and can be a safe investment asset, when there is inflation and political turmoil.

"(Gold) being an asset that is always safe and can even be an investment option that is resistant to inflation and resilient to political turmoil," he explained.